Question

In: Economics

Always Round Tire tries to base its promotions on seniority (where education and training requirements are...

Always Round Tire tries to base its promotions on seniority (where education and training requirements are not necessary). The company finds that this system seems to work most of the time with shop floor supervisors and team managers. But the system breaks down for higher-level positions. Why and what other options would you suggest?

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Promotion based on seniority
Promotion based on seniority is when a person is promoted on the basis of his experience, not on the basis of training and development he has had. This system ensures that there is more harmony within the company as no employee is jealous of the other and nobody tried to play the "favoritism" card to work up the ranks of the company.
Why did promotion based on seniority fail at Always Round Tire?
When we talk about higher level positions, the amount of work, the efficiency, the knowledge level, the basic development of the employee, etc are the factors that strike mind. It is not necessarily correct that a senior employee is more suited for a higher level job. A senior employee may be because of his seniority, might fail in ensuring the efficiency levels required for that high level positions and it is also possible that he doesn't possess the knowledge or training to work at level. Only seniority doesn't check all the boxes when higher-level positions are concerned and hence this would have been the case in Always Round Tire.
What can they do?
But as we learn everyday, a hybrid approach is way better in many circumstances. (merit system is where employees are promoted on the basis of their level of training, development and education). Merit system could have been used as well and it might also have gotten broken down for higher level positions as it doesn't cover the experience requirements of the position concerned. So they can use a hybrid approach of seniority and merit based system to ensure that a higher-level position is filled with a person that fits it and system works.


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